Write brief notes on warehousing and advertising.
Warehousing and Advertising are two of the most important determining factors of a successful business.
Warehousing:
One of the main functions of warehousing is to create time utility, ownership utility, and spatial utility of goods by storing those goods at specific places. Raw materials required for production are not always available near the manufacturing plant. So, raw materials are collected and stored before production, and raw materials sent to the manufacturing plant are required during production. The quality and quantity of the products are maintained as warehousing facilitates the proper and scientific storage of the products. As a result, unnecessary wastage of products can be prevented. Warehousing helps tremendously in foreign trade as well in many cases. A number of bonded warehouses have been set up under the control of customs authorities to assist importers. If the goods are imported and stored in such warehouses and re-exported only after paying the export duty, import duty has not to be incurred. So, it appears that the role of warehousing in the development of industry, commerce, and society is undeniable.
Advertising:
In today’s competitive market, advertising and salesmanship are essential for conveying various information about the products like – where they are available, at what price, and the quality of the products to the consumers after they are produced. The main function of salesmanship is to establish a personal connection with the prospective customer, explain the quality of the product, and convert the prospective customer into a regular and permanent customer. In this context, the former president of the United States of America, Roosevelt, said that modern advertising serves real information about many useful objects to the largest number of people. Actually, it is a kind of teaching system. When the consumer gets to know the utility of the product through advertisement, the demand for that product is created and the consumer buys the product. Demand generation involves four steps – (1) seeking attention, (2) creating interest, (3) alleviating apprehension, and (4) motivating the purchase of the product. The first three stages are done through advertising and the last is done by the salesman through his qualitative efforts i.e. salesmanship. The importance of service work of advertising and marketing is immense in improving society and improving the quality of life.
Important Questions from this Chapter:
- Difference between Business and Profession
- Economic objectives of business
- Business risk and its economic objectives
- Characteristics of Commerce
- Classification of Industry with examples
- Short Notes on Warehousing and Advertising
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